The Subcontractor and General Contractor may be referred to individually as “Party” and collectively as “Parties”
This Subcontractor Agreement (the “Agreement”) is made valid upon signature by both Parties.
THEREFORE, in consideration of the mutual promises and covenants herein contained, the Parties hereto agree to the following:
The General Contractor is the party who originally entered into a contract with a client directly to perform construction services. The General Contractor communicates directly with the client who owns that property.
General Contractor has smaller portions of the larger project that they prefer not to or are unable to do themselves because of their specialized nature. Therefore, the General Contractor contracts those portions out to another party, known as the Subcontractor.
The Subcontractor works on the property, often providing specialized construction services like electrical work, flooring installation, or plumbing, and communicates with the General Contractor.
Since the General Contractor is the only one in direct contract with the Client, they are responsible to the Client for all of the work done, including the work done by the Subcontractor. If there is a problem with the Subcontractor's work, the Client would go to the General Contractor to rectify that error.
This document contains all of the information necessary to outline and describe the details of when and how the Subcontractor will perform the construction services and the duties of both parties during and after that process.
This Agreement includes details such as identifying information about the parties and where they are located, the General Contractor and Subcontractor's contractor license numbers, the address of the worksite where the construction will be taking place, detailed description of the work that will be done by the Subcontractor, the materials each party will provide, and the payment arrangement for how the General Contractor will reimburse the Subcontractor for their materials and time spent on the project.
The Agreement also notes when construction is due to begin and when construction is due to be finished, whether that be a specific date or upon the occurrence of a particular event or milestone.
Important provisions regarding indemnification, insurance, change orders, unforeseen conditions, defaults, the nature of the parties' relationship and miscellaneous concerns are also included.
Once the document has been completed and the Parties have agreed to the specifics of the project, both parties should sign the document.
Construction projects and buildings are subject to national, federal and state/local laws.
If the Subcontractor employs additional workers during the course of the construction project, they are required to meet the requirements of federal laws such as the Fair Labor Standards Act (establishes minimum wage, overtime pay, record-keeping, and youth employment standards affecting employees) and the Federal Family and Medical Leave Act (requires covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons).